this post was submitted on 07 Jun 2023
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The line has to go up.
The issue is that big companies have shareholders, and those shareholders don't demand that the company stay solvent, but that they achieve year-over-year growth. Even minimal growth like 2-3% over LY is considered a failure to most shareholder groups, depending on the size of the company. So eventually they have to squeeze every last drop out of the userbase/product to keep the line going up, so shareholders don't sell and bail.
Now, with Twitter there's a whole litany of poitical tin-foil hat theories I can shout out, but this isn't the place for it.
Reddit, Facebook, and Twitch: it's money.
Reddit is getting as much money as it can shored up with Venture Capital before it brings out it's Initial Public Offering (basically going public for people to buy stock in). High IPO, more perceived value, more space for advertisers, people are going to buy in. EDIT: I believe this is why they're making their API pricing so high (hence the whole current Reddit situation right now) so that they can get more ads viewed.
Facebook: I don't even know why people use FB, but im going to guess it's just ads.
Twitch: Again, Ad revenue. Slam as many first-party ads as you can so you get the money from advertisers. Keep the space clean and homogenized so Pepsi doesn't feel bad about putting ads in a video before a hot-tub streamer. (not that they're a bad thing, just using an example)
Everything comes down to the line. And it has to keep going up.
Surely wouldn't it be easier for them to just inject ads into the API and keep it cheap?
IF that's something they can do? I don't know. I don't know a thing about backend work on third-party programs.
There's a part of the that thinks Reddit is the same way and just went "Hell with it, use us or nothing at all" and nukes the whole API except for the big-rollers.
I wouldn't even know who would pay such a high price for that anyway, outside of advertisers and algorithm scrapers.
It is possible for them to return sponsored posts via the API.
Apps will request something like "Give me the first 100 posts from the subreddit /r/aww, using the sorting Hot". And then Reddit can return 95 actual posts with sponsored posts sprinkled in between every so often.